Michigan Life, Accident, and Health Exam
Questions and Answers
The Commissioner of Insurance is appointed by the Governor for a term of
4 years
All of the following are examples of insurance transactions except:
A. soliciting applications for insurance
B. delivering policies
C. licensing of producers
D. collecting premiums
Correct answer: C - licensing of producers
A temporary license issued to close the affairs of a deceased producer may be
issued for up to _____ days at the discretion of the Commissioner
180 days
Continuing Education (CE)
______ hours of CE every two years
______ hours must be in Ethics
______ day grace period to complete CE
,24 total hours every two years
3 hours in ethics
90 day grace period
Michigan Life and Health Insurance Guaranty Association
Protects policy holders against failure insolvent insurers
Controlled business
It is permitted provided it does not exceed 15% of the premiums written in a 12-
month period
To motivate a buyer to sign an application for insurance, a producer promises a
gift equal to 50% of the commission. This is an example of __________.
Rebating
Defamation
A written statement that is false and derogatory that is designed to injure
someone's reputation.
The maximum fine for knowingly violating a cease and desist order is $________
and __________________.
$10,000 and possible license revocation
,Insurance counselor
Provides advice concerning an insurance policy and charges a fee for that advice.
An applicant who has been denied an insurance license has _____ days to
request a hearing to protest the denial.
30 days
True / False
A producer may share commissions with another licensed producer
True
True / False
A producer may not share commissions with a licensed nonresident producer
False
If, after a hearing, the Commissioner believes a producer knowingly violated
insurance licensing laws, the Commissioner can:
Fine the producer a max of $2,500 per violation
A producer has a fiduciary responsibility to all of the following:
- Insured on cancelled policies
- Insurer, for premiums due
, - Prospective purchaser of insurance, when the application is rejected.
Why can't a producer barter or trade an insurance contract for goods and
services?
The insurance product is not the producer's to barter; it belongs to the insured.
How often must the Commissioner examine the books, records, and documents
of domestic insurers?
At least once every 5 years
A producer has _____ days to respond to charges of violating insurance laws.
30 days.
If a producer is convicted of routinely misrepresenting benefits in insurance
policies, he may be fined up to $_______ for all violations.
$25,000
Under what type of policy does an insured have to be notified if current policy
values are insufficient to maintain the policy, given guaranteed interest and
expense rates?
Universal Life Insurance
An advertisement for a life insurance policy must include all of the following:
- information material to the insurance policy
Questions and Answers
The Commissioner of Insurance is appointed by the Governor for a term of
4 years
All of the following are examples of insurance transactions except:
A. soliciting applications for insurance
B. delivering policies
C. licensing of producers
D. collecting premiums
Correct answer: C - licensing of producers
A temporary license issued to close the affairs of a deceased producer may be
issued for up to _____ days at the discretion of the Commissioner
180 days
Continuing Education (CE)
______ hours of CE every two years
______ hours must be in Ethics
______ day grace period to complete CE
,24 total hours every two years
3 hours in ethics
90 day grace period
Michigan Life and Health Insurance Guaranty Association
Protects policy holders against failure insolvent insurers
Controlled business
It is permitted provided it does not exceed 15% of the premiums written in a 12-
month period
To motivate a buyer to sign an application for insurance, a producer promises a
gift equal to 50% of the commission. This is an example of __________.
Rebating
Defamation
A written statement that is false and derogatory that is designed to injure
someone's reputation.
The maximum fine for knowingly violating a cease and desist order is $________
and __________________.
$10,000 and possible license revocation
,Insurance counselor
Provides advice concerning an insurance policy and charges a fee for that advice.
An applicant who has been denied an insurance license has _____ days to
request a hearing to protest the denial.
30 days
True / False
A producer may share commissions with another licensed producer
True
True / False
A producer may not share commissions with a licensed nonresident producer
False
If, after a hearing, the Commissioner believes a producer knowingly violated
insurance licensing laws, the Commissioner can:
Fine the producer a max of $2,500 per violation
A producer has a fiduciary responsibility to all of the following:
- Insured on cancelled policies
- Insurer, for premiums due
, - Prospective purchaser of insurance, when the application is rejected.
Why can't a producer barter or trade an insurance contract for goods and
services?
The insurance product is not the producer's to barter; it belongs to the insured.
How often must the Commissioner examine the books, records, and documents
of domestic insurers?
At least once every 5 years
A producer has _____ days to respond to charges of violating insurance laws.
30 days.
If a producer is convicted of routinely misrepresenting benefits in insurance
policies, he may be fined up to $_______ for all violations.
$25,000
Under what type of policy does an insured have to be notified if current policy
values are insufficient to maintain the policy, given guaranteed interest and
expense rates?
Universal Life Insurance
An advertisement for a life insurance policy must include all of the following:
- information material to the insurance policy
